Cannabidiol (CBD) is one of the most active cannabinoid compounds found in cannabis and hemp plants. The most famously recognized cannabinoid is tetrahydrocannabinol (THC) which plays a role in the intoxication of consuming cannabis. Conversely, CBD does not produce an intoxicating effect, unlike THC. Instead, ongoing research and evidence have shown that CBD has played a pivotal role in offering therapeutic and health benefits.
Essentially, CBD products like CBD edibles and gummies undergo several procedures before they are sold in the market. First, the raw materials are sourced and harvested. From here, CBD oil is extracted from these plants using a variety of methods.
Some people do this by themselves where they also outsource raw materials from extraction plants. Once the CBD oil is extracted, it can be marketed as a concentrated oil or infused in various products like making CBD gummies.
Projecting the Growth of CBD Industry
Industry analysts have predicted that the CBD industry will immensely project by 2024 with a staggering $20 billion in sales. In 2018, the industry already amassed a major surge of $1.9 billion in sales. After six years, the CBD industry will skyrocket a 49% annual growth percentage. Consequently, society is now more open to accepting CBD oils and products in the market. More people are using CBD to relieve stress, get better sleep, and manage physical body pain.
It is also expected that there is an increase in brick-and-mortar CBD shops. Other than this, pharmaceutical CBD stores and e-commerce shops that sell CBD products will likely surge in number. The industry is also trying new products which can also be good for animals. CBD products can be used to calm pets and relieve them of stress. As ongoing research is done about this, the CBD industry is here to stay.
Starting a CBD Industry
Entering the CBD industry means doing all the hard work and effort to make a CBD business successful. More than this, knowing the changing regulatory landscape of the industry is also integral in starting a CBD business. In the U.S. alone, the CBD industry reached its peak in 2020 with $4.6 billion in sales. This growth is expected to accelerate in many years to come.
There are steps and procedures needed to go through before starting a CBD business; much like any other type of business. Know how the market works and align how your business will address the growing trend of the CBD industry.
Understanding Legal Requirements
The 2018 Farm Bill has legalized industrial hemp which includes hemp extract such as CBD oils and products. However, there are significant regulatory and legal requirements involved in the CBD industry. Currently, the Food and Drugs Administration (FDA) devises the regulations and legal requirements of the industry. But, there is still a gray area between the legal requirements set by the FDA and the federal state. Essentially, the federal-state does not tolerate the therapeutic and health benefits of using CBD products.
As such, understanding how the law works in the CBD industry and also playing it safe by following necessary legal regulations is key in keeping the industry stabilized. It is important to have well-informed decisions when it comes to starting a CBD business.
Becoming a Big Business
It is an established fact that the CBD industry is gaining traction. This growth is expected to reach its peak in 2024. As CBD companies offer a wide array of products, this diversity will even catapult the industry into becoming a bigger business than ever. Moreover, securing USDA certifications and FDA registrations are both essential in instilling confidence among customers that the product they purchase is of good quality.
Approaching the CBD Business in the Right Way
True enough, the CBD industry is constantly gaining momentum. Indeed, this industry is unparalleled when it comes to gaining sales and immensely growing its reach to customers. essentially, this is the fastest growing industry in many countries such as in the US. However, this also means that following rules and obliging with legal requirements should also be taken into account.
Having a creative mindset and diligent trait will catapult a CBD business into greater heights and thereby, set it apart from other CBD companies. As the industry accelerates, it also creates a cutthroat competitive environment. As such, it is vital to differentiate your CBD products and go out of your way to make sure that your business stands out from the rest.